LNG Development is Key to Canada’s Economic Future

LNG Development is Key to Canada’s Economic Future

RECENT POSTS

LNG is Key to Canada's Economic Future

A strong consensus is taking hold across Canada: liquefied natural gas (LNG) is not just an economic opportunity, but a national imperative. For years, our organization has championed the immense, multi-faceted benefits of a robust Canadian LNG industry. Today, hearing similar messages being echoed by provincial and federal leaders is a welcome and crucial step forward to a more prosperous, economically secure Canada.

The latest examples of support from our leaders are clear and compelling.

B.C. Premier David Eby stated the other day, “Projects like LNG Canada are the reason that B.C. will be the economic engine of a more independent Canada. It creates good jobs, opportunities that let young people build a life here in the North and generates the revenue we need to improve public services everyone relies on.”

Bravo Eby. We couldn’t agree more. Eby’s sentiment was echoed by his Minister of Energy and Climate Solutions, Adrian Dix, who emphasized the global importance of our resources.

“British Columbia will produce some of the lowest-emission LNG in the world. It is imperative that we get our clean-energy resources to global markets so that we can deliver a stronger, more diversified economy. LNG Canada’s first shipment to Asia is a major milestone and one that positions B.C. and Canada to meet growing global demand, while highlighting our commitment to responsible energy development,” he said. 

At the federal level, the message of support for LNG is just as clear. Tim Hodgson, Canada’s Minister of Energy and Natural Resources, said via a series of X posts that Canadians should "take pride in how high our LNG industry has raised the bar through: low-emissions production, Indigenous co-ownership, [and] environmental stewardship. This is proof that when Canada leads with values, vision, and determination, we don’t just keep up — we pull ahead.”

For Canada Action, these statements affirm what our advocacy has shared all along: Canadian energy – whether that be oil, natural gas, wind, solar, hydro, nuclear, or anything in between – is a force for good. The world is better off with more Canadian-made energy.

Before Bill C-59 came into effect, our organization ran advertisements across the country with similar messages of support for LNG and other resource development. We spoke of the pride, prosperity, and leadership inherent in our energy industry and the emerging LNG sector. To see these balanced, fact-based messages now being echoed by our leaders reinforces the accuracy and importance of our movement to support resource families and to grow shared prosperity for all Canadians.

If we've learned anything over the past several months, it’s that we need to become self-sufficient and not put all our eggs in one basket (the U.S.). The need to develop new trade infrastructure like pipelines, powerlines, ports, railways, and roads that will enable us to ship more of our natural resources to world markets has never been more crucial.

Global LNG demand is skyrocketing, with the latest outlooks expecting the world to consume up to 60% more between now and 2040. If Canada doesn't grasp global LNG market share and the economic rewards that come with, our competitors will gladly do so, as they have shown over the past several years.

The United States, for example, recently secured a 3.5-year deal to supply $100 billion of LNG to South Korea, and a separate 20-year deal to supply Japan with up to 5.5 million tonnes per annum (mtpa). For perspective, that’s about 40% of LNG Canada Phase 1’s total capacity of 14 mtpa – a considerable amount. Meanwhile, the U.S. has signed several other multi-billion-dollar supply deals with nations all over the world, with allies like Germany, Poland, and Greece, who have previously visited Canada and asked for or supported our LNG. Qatar is also close behind, with massive gas field expansions that will supply significant growth in its LNG export capacity.

While Canada stalls on whether we should tear down regulatory barriers to new oil and gas development such as Bill C-69, Bill C-48, and the emissions cap, our competitors are signing long-term deals to supply the very markets that have asked for our reliable, democratically produced energy.

The path forward is clear. Our allies want our energy. The world needs an alternative to coal. Indigenous communities are seeking partnership and prosperity. And Canadians are ready to build.

Our leaders have opened the door to becoming a major LNG exporter. Now is the time to turn this consensus into concrete action by building the infrastructure that will secure our prosperity, support our allies, and answer the global call for more Canadian energy.